The Indian Paper Industry accounts for about 2.6% of the world's production and is positive over the coming years. The growth is expected to be driven by the rising demand for paper products, which is majorly supported by various government education programmes. India?s per capita consumption of paper is just around 5 kg, one of the lowest in the world whereas for USA, it is around 320 kg and 30 kg in China. It is said, an increase of 1 kg in per capita consumption will lead to a demand of 1 million tonnes of paper products. There are vast demands i
India's paper imports have risen to 4.0 million tonnes in the year 2016-17. In value terms it has risen to 11.8% annually over the last 6 years. The impact is due to larger Free Trade Agreements India has signed with ASEAN and South Korea. Import duties on all tariff lines under paper and paper board were reduced gradually and from January 1, 2014, it was zero duty. From January 1, 2018 it was zero duty for imports from South Korea too based on the FTA with that country.
India Paper industry is finding shortage of wood pulp with domestic production is not meeting the increased demand. The industry has resorted to import wood fibre, chips and logs from overseas despite several difficulties. Over the next five years, demand for paper is expected to increase by between 2-12% annually, depending on paper grade. Over the past decade, the domestic pulp industry has steadily increased its usage of pulpwood because of higher pulp production, less usage of bamboo and because several pulp mills switched from recycled fiber to wood fiber. The share of imported wood fiber for the pulp industry accounted for almost ten percent of total consumption of wood fiber in 2014, and this share is expected to increase in the coming years. Importation of chips is fairly new and
Indian Paper Industry has invested Rs. 25,000 crore over the last decade in modernization and capacity expansion programme. They have expected India to be the fastest growing paper market with growth rate of 5-6%. However, the fastest growth rate has attracted competition especially from China and other south east Asian countries which resulted in high imports, which have been growing at a compounded rate of 21% over the last 5 years. Imports from Asean market enjoy basic customs duty on paper is nil under the Indo-Asean Free Trade Agreement. Apart from imports, Indian paper industry is also facing challenges in rising raw material costs, where mill-delivered wood costs $175-200 a tonne in India against an average of $100 a tonne in other Asian countries. To overcome the above, the ind